CAMBRIDGE, Mass., April 28 /PRNewswire-FirstCall/ -- Transkaryotic
Therapies, Inc. (Nasdaq: TKTX) today announced that it has agreed to sell $90
million principal amount of 1.25% senior convertible notes due 2011. The
company has granted to the underwriters an overallotment option to purchase an
additional $10 million principal amount of the notes within 30 days of the
offering.
The notes are currently convertible into shares of the Company's common
stock at an initial conversion price of approximately $18.49 per share,
representing a premium of approximately 22.5% over today's closing price.
JP Morgan Securities Inc. is the sole book running manager for the
offering, SG Cowen & Co., LLC is the joint lead manager for the offering and
Pacific Growth Equities, LLC and RBC Capital Markets are co-managers.
The company estimates that the net proceeds of the offering will be
approximately $87 million after deducting estimated underwriting discounts and
commissions and estimated expenses of the offering. The company expects to
use these net proceeds to fund its research and product development
activities, including its ongoing clinical trials and other clinical and
preclinical development programs, and for other general corporate purposes,
including the Company's expected purchase of the holdings of the minority
stockholders of its majority-owned subsidiary in Europe.
A shelf registration statement relating to the notes has previously been
filed with, and declared effective by, the Securities and Exchange Commission.
Any offer will be made only by means of a prospectus and a prospectus
supplement. A copy of the prospectus and the prospectus supplement related to
the offering can be obtained when available from the Prospectus Department of
JP Morgan Securities Inc., One Chase Manhattan Plaza, Floor 5b, New York, NY
10081.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
such state.
About TKT
Transkaryotic Therapies, Inc. is a biopharmaceutical company primarily
focused on researching, developing and commercializing treatments for rare
diseases caused by protein deficiencies. Within this focus, the company
markets Replagal(TM), an enzyme replacement therapy for Fabry disease, and is
developing treatments for Hunter syndrome and Gaucher disease. Outside its
focus on rare diseases, TKT intends to commercialize Dynepo(TM), a Gene-
Activated(R) erythropoietin product for anemia related to kidney disease, in
the European Union. TKT was founded in 1988 and is headquartered in Cambridge,
Massachusetts, with additional operations in Europe, Canada and Latin America.
Gene-Activated(R) is a registered trademark and Replagal(TM) is a trademark of
Transkaryotic Therapies, Inc. Dynepo(TM) is a trademark of Aventis.
CONTACTS:
Justine E. Koenigsberg Daniella M. Lutz
Director, Corporate Communications Corporate Communications Specialist
(617) 349-0271 (617) 349-0205
SOURCE Transkaryotic Therapies, Inc.
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Related links:
http://www.tktx.com
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Company News On-Call:
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CONTACT:
Justine E. Koenigsberg, Director, Corporate
Communications, +1-617-349-0271, Daniella M. Lutz, Corporate
Communications Specialist, +1-617-349-0205, both of TKT
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